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Kangda International Environmental Co Ltd (6136) AI Stock Analysis

HK:6136

Kangda International Environmental Co Ltd

(HKEX:6136)

Select Model
Rating:65Neutral
Price Target:HKD 0.72â–²(2.86% Upside)
Action:reiterated
Date:09/23/26

The stock’s moderate score reflects solid margins and improving cash generation in a regulated water business, tempered by high leverage and only modest returns, while weak price momentum and bearish technical signals weigh on the outlook even as a low P/E and reasonable dividend yield provide meaningful valuation support.

Positive Factors
Strong Operating MarginsGross margin near 45% and EBIT/EBITDA margins of about 35%/39% indicate strong operating economics. Maintaining this profitability can support reinvestment in wastewater assets and provide resilience as the company operates its infrastructure portfolio over the next several quarters.
Negative Factors
Meaningful LeverageDebt was about 1.51x equity in 2025 and generally 1.5–1.9x over the period. This leverage can constrain financial flexibility, increase the burden on future cash flows, and limit the capacity to fund new environmental projects without additional financing.

Kangda International Environmental Co Ltd (6136) vs. iShares MSCI Hong Kong ETF (EWH)

-25%0%25%50%75%100%HK:6136+53.17%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 1.61B
Dividend Yield
0.71%
Average Volume (3M)
416.94K
Price to Earnings (P/E)
4.2
Beta (1Y)
0.02
Revenue Growth
3.75%
EPS Growth
94.39%
Country
Hong Kong
Employees
2,149
Sector
Utilities
Sector Strength
66
Industry
Regulated Water

Kangda International Environmental Co Ltd Business Overview & Revenue Model

Company Description

Kangda International Environmental Company Limited is an investment holding enterprise primarily engaged in water-related environmental services across the People's Republic of China. Its urban water solutions encompass the full lifecycle of wastewat...

How the Company Makes Money

Kangda International Environmental generally earns revenue through long-term project-based arrangements for wastewater treatment infrastructure, typically involving (i) investing in and constructing treatment plants and (ii) operating those plants un...

Kangda International Environmental Co Ltd Financial Statement Overview

Summary

Recovering profitability with revenue back to growth in 2025, strong EBIT margins in the low-30s to high-30s, and improved operating cash flow and free cash flow coverage, but offset by persistently high leverage and only modest returns on equity.

Income Statement

72Positive

Balance Sheet

45Neutral

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.31B2.43B2.26B2.22B2.90B2.92B
Gross Profit1.09B1.09B1.09B1.08B1.27B1.34B
EBITDA940.09M851.97M844.16M907.38M1.03B1.09B
Net Income321.22M237.26M168.00M124.75M235.68M412.75M
Balance Sheet
Total Assets18.77B18.70B19.15B19.23B18.97B18.28B
Cash, Cash Equivalents and Short-Term Investments747.99M801.35M521.16M595.36M559.94M318.33M
Total Debt9.01B9.38B9.61B9.92B9.52B9.47B
Total Liabilities12.27B12.38B13.13B13.38B13.23B12.87B
Stockholders Equity6.40B6.23B5.93B5.71B5.60B5.27B
Cash Flow
Free Cash Flow363.40M639.34M351.04M231.81M367.95M319.11M
Operating Cash Flow388.23M681.14M403.14M292.92M368.41M320.17M
Investing Cash Flow72.09M7.30M151.77M12.80M101.98M-122.08M
Financing Cash Flow-490.89M-606.54M-626.02M-257.11M-563.03M-337.88M

Kangda International Environmental Co Ltd Technical Analysis

Technical Analysis SentimentNegative
Last Price0.70

Price Trends

50DMA0.76Negative
100DMA0.77Negative
200DMA0.71Negative

Market Momentum

MACD-0.01Positive
RSI39.41Neutral
STOCH59.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6136, the sentiment is Negative. The current price of 0.70 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.76, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6136.

Kangda International Environmental Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (66)

Financial Indicators

HK:6136 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *66Neutral$17.65B18.105.60%3.62%6.62%11.55%
HK:6136HK:613665NeutralHKD 1.61B4.235.09%0.71%3.75%94.39%
HK:2281HK:228163NeutralHKD 502.93M4.003.42%7.86%-6.72%-41.93%
HK:0855HK:085553NeutralHKD 6.36B6.496.84%6.67%-11.32%-8.06%
HK:0371HK:037152NeutralHKD 14.27B10.135.29%10.35%-5.30%-2.36%
HK:3768HK:376848NeutralHKD 303.59M2.362.00%―-6.02%-54.26%
HK:1129HK:112942NeutralHKD 103.05M-0.36-36.69%―-56.43%57.59%

* Utilities Sector Average

Performance Comparison

-50%0%50%HK:6136HK:0371HK:0855HK:1129HK:2281HK:3768Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:6136 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:6136Kangda International Environmental Co Ltd0.700.2451.84%
HK:0371Beijing Enterprises Water Group 1.43-0.93-39.49%
HK:0855China Water Affairs Group 3.90-2.13-35.33%
HK:1129China Water Industry Group Limited0.16-0.68-80.60%
HK:2281Luzhou Xinglu Water (Group) Co., Ltd. Class H0.58-0.15-20.52%
HK:3768Kunming Dianchi Water Treatment Co., Ltd. Class H0.29-0.51-63.13%

Kangda International Environmental Co Ltd Corporate Events

Kangda International Shareholders Back Option Grant to Chairman Du

Sep 17, 2026

Independent shareholders of Kangda International Environmental Company Limited have overwhelmingly approved an ordinary resolution at an extraordinary general meeting held on 17 September 2026. The poll backed the board’s proposal to grant shar...

Kangda International Raises US$50 Million Through 8% Senior Notes Due 2029

Sep 4, 2026

Kangda International Environmental Company Limited has completed the issuance of US$50 million in 8.0% senior notes due 2029, marking its first notes offering since obtaining an international credit rating earlier this year. The notes, placed solely...

Kangda International Calls EGM to Approve Major Share Option Grant to Chairman

Aug 31, 2026

Kangda International Environmental Company Limited has called an extraordinary general meeting in Hong Kong for 17 September 2026 to seek shareholder approval for a major grant of share options. The meeting will be conducted by poll, with standard pr...

Kangda International Sets EGM Date and Closes Register for Option Scheme Vote

Aug 28, 2026

Kangda International Environmental Company Limited has announced arrangements for an extraordinary general meeting scheduled for 17 September 2026, linked to the proposed grant of options under its share option scheme. The company will close its tran...

Kangda International boosts interim profit on cost savings despite revenue decline

Aug 12, 2026

Kangda International Environmental Company Limited reported interim results for the six months ended 30 June 2026 showing revenue of RMB1,061.2 million, down 9% year-on-year mainly due to lower construction services income, but gross profit edged up...

Kangda International Sets August Board Meeting to Review Interim Results and Dividend

Jul 31, 2026

Kangda International Environmental Company Limited has scheduled a board meeting for 12 August 2026 to review and approve its interim financial results for the six months ended 30 June 2026. The meeting will also consider the publication of these res...

Kangda International Signals 80% Interim Profit Surge on Cost and Debt Cuts

Jul 8, 2026

Kangda International Environmental Company Limited has issued a positive profit alert, indicating that profit attributable to equity owners for the six months ended 30 June 2026 is expected to rise by about 80% from RMB103.4 million a year earlier. T...

Kangda International Environmental Sets Out Board and Committee Structure

Jun 30, 2026

Kangda International Environmental Company Limited has disclosed the current composition of its board of directors, naming four executive directors and three independent non-executive directors, with chairman duties held by Mr. Du Lindong. The compan...

Kangda International Reshapes Board as Senior Directors Resign and Veteran Independent Joins

Jun 29, 2026

Kangda International Environmental Company Limited announced that non-executive director Zhao Juanxian and independent non-executive director Chang Qing will resign from the board and its key committees, effective 1 July 2026, citing other business c...

Kangda International exits Jiyuan wastewater plant in RMB65m settlement

Jun 26, 2026

Kangda International Environmental Company Limited has agreed to terminate its concession for the Jiyuan Wastewater Treatment Plant in Henan Province, transferring the plant and related fixed assets back to the Jiyuan City Government. Under an early...

Kangda International Wins Strong Shareholder Backing at 2026 AGM

Jun 26, 2026

Kangda International Environmental Company Limited reported that all ordinary resolutions at its 26 June 2026 annual general meeting were approved by poll with overwhelming shareholder support. Shareholders adopted the audited financial statements fo...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 23, 2026